Most Read

Most Read

Shareholders cheer completion of Lonmin-Amplats deal

Lonmin’s share price rose 4% to R11.60 and Anglo American Platinum’s 2.2% to R354 on Wednesday morning after the parties announced the completion the Pandora deal announced a year ago.

Amplats said it had completed "the disposal of its loss-making 42.5% interest in Pandora to Lonmin for a deferred cash payment of a minimum of R400m and a maximum of R1bn, based on 20% of free cash flow over six years."

Lonmin said it now owned 100% of Pandora as it had also acquired Mvelaphanda Resources’ 7.5% shareholding in the project.

Amplats said it had also completed the sale of Amandelbult to Northam for R1bn, and was making good progress on the sale of Union mine to Siyanda Resources.

"We believe we have delivered transactions that are beneficial for all parties involved, enabling a sustainable future for the Pandora and Union mines," Amplats CEO Chris Griffith said in the statement.

"The benefits of operational control over the Baobab concentrator will enable us to continue to unlock value at Mogalakwena mine, and the cash proceeds received from Northam will allow us to further reduce our net debt position. We will continue to focus on completing the disposal of Union and Masa, which is expected to occur in early 2018."